12) The primary difference between prepaid and accrued expenses is that prepaid expenses have(a) been incurred and accrued expenses have not.(b) not been paid and accrued expenses have.(c) been paid and accrued expenses have not.(d) not been recorded and accrued expenses have.13. A high receivables turnover ratio indicates that(a) the companys sales are increasing.(b) a large proportion of the companys sales are on credit.(c) customers are making payments very quickly.(d) customers are making payments very slowly.14. Cash equivalents(a) include all investments in shares.(b) include short-term, highly liquid trading investments plus accounts receivable less any bank overdrafts.(c) include short-term, highly liquid trading investments less any bank overdrafts.(d) are reported as non-current assets.15. Internal auditors(a) are hired by independent accounting firms to audit companies.(b) are employees of the government who evaluate the internalcontrols of companies filing tax returns.(c) evaluate the system of internal controls for the companies that employ them.(d) cannot evaluate the system of internal controls of the companies that employ them because they are not independent.

Use the following information to Answer MCQ # 16 19:XYZ Inc. uses the average cost formula in a perpetual inventory system.(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)Jun 1Beginning inventory20 units @ $19.00 per unitJun 5Purchase100 units @ $22.00 perunitJun 8Sale70 unitsJun 9Purchase80 units @ 22.31 per unitJun 10Sale25 unitsJun 22Sale40 units16. The cost of goods sold for the June 8 sale is(a) $1,480.00.(b) $1,505.00.(c) $1,527.68.(d) $1,540.00.17. The cost of goods sold for the June 10 sale is(a) $545.60.(b) $549.96.(c) $550.00.(d) $557.75.18. Total cost of goods sold for the month of June is(a) $2,914.65.(b) $2,934.96.(c) $2,946.24.(d) $2,994.80.19. XYZ Inc. has an ending inventory on June 30 of(a) $1,370.00.(b) $1,418.56.(c) $1,429.90.(d) $1,450.15.20. Adjusting entries for accrued revenues will:(a) decrease a statement of financial position account and increase a statement of incomeaccount.(b) increase a statement of financial position account and decrease a statement of income account.(c) decrease both a statement of financial position and a statement of income account.(d) increase both a statement of financial position and a statement of income account.

21. If a company has overdrawn its bank balance, then(a) the cash account will show a debit balance.(b) the cash account will show a credit balance.(c) the cash account debits will exceed the cash account credits.(d) this cannot be detected by observing the balance of the cash account.Use the followinginformation to answer MCQ #22 -25.FRANKLIN LTD.Statement of Financial PositionDecember 31, 2022Cash$ 65,000Accounts payable$ 66,000Prepaid insurance15,000Salaries payable25,000Accounts receivable95,000Bonds payable225,000Inventory120,000Total liabilities316,000Land165,000Building$235,000Common shares250,000Less: AccumulatedRetained earnings146,000depreciation70,500164,500Total shareholders equity396,000Trademark$ 125,000Less: Accumulatedamortization37,50087,500Total liabilities andTotal assets$712,000shareholders equity$712,00022. The total dollar amount of assets to be classified as current assets is(a) $295,000.(b) $235,000.(c) $175,000.(d) $160,000.23. The total dollar amount of assets to be classified as net property, plant, and equipment is(a) $329,500.(b) $164,500.(c) $252,000.(d) $235,000.24. The total amountin the contra asset accounts is(a) $ 37,500.(b) $ 108,000.(c) $70,500.(d) $252,000.25. Non-currentliabilitiestotal(a) $712,000.(b) $316,000.(c) $225,000.(d) $ 25,000.

All the questions are Mcq,only answers needed